Mitchells & Butlers up thanks to Britons' appetite for eating out

"The customer is cautious and price conscious, but he has not given up. He is getting on with it. He's well aware of the state of the nation, but eating out is a small treat," says Fowle. "Life goes on."

He was speaking as he unveiled a 26% jump in profits for the year to September of £169 million.

Under chairman John Lovering he is reshaping a business that goes back to 1898 away from traditional wet-led pubs and towards family eateries such as Harvester and Toby Carvery.

Fowle disputes this. "Food volumes are up. Some menu items have not moved in the last financial year, most of it has been extra spend. It's customers treating themselves. The average main meal is still under £8."

There's no resumption of dividend payments yet, though the company says it is "committed" to their return.

The shares took a hit in an edgy market, down 14.7p to 339.10p.

Hugh-Guy Lorriman at Seymour Pierce is a sceptic, who thinks the market's assumption that the proceeds from asset sales will be reinvested in businesses that improve the bottom line. He says: "We still argue that the risk in the story is high. We remain sellers."